Overview

• The Institutional Class returned 11.94% versus the S&P 500’s 10.94% for the quarter.
• About 80% of the fund’s relative outperformance came from sector allocation, with security selection accounting for the balance.
• A renewed boom in semiconductors powered market leadership; the fund’s underweights in NVIDIA (about 4.5% vs a 6.3% benchmark weight) and a slight underweight in Broadcom detracted even as both stocks surged, while Taiwan Semiconductor also performed strongly.
• Markets strengthened after the Trump administration paused proposed tariff actions, easing policy risk that had weighed on equities early in the quarter.
• Portfolio actions and fundamentals featured a sale of Procter & Gamble on expected slower organic growth, strength in Howmet from extended aircraft backlogs, and a rebound in Eaton tied to datacenter and power demand.